Albaraka Banking Q1 net soars to $43m

Manama, May 13, 2009

International Islamic banker Albaraka Banking Group has announced a net profit of $43 million for the first quarter of the year, a 5.1 per cent rise from the fourth quarter last year.

The Bahrain-based banking group saw total operating profit hit $139 million, which is almost at the same level of the first quarter last year of $141 million.

After deducting all operating expenses, the net operating income amounted to $70.5 million.

The net income of the group reached $43 million up 5.1 per cent from $40.9 million in the last quarter of 2008.

As compared to the net income of the first quarter of last year of $49 million, the net income of the first quarter of this year has shown a decline.

The total assets of the group amounted to $10.93 billion as at the end of March, the same level as the year-end.

'We are pleased with the financial results achieved by the group in the first quarter of 2009, given the adverse economic and financial conditions that the world faced, which in turn, impacted the activities of all banks,' said chairman Shaikh Saleh Abdulla Kamel.

'Albaraka Banking Group was prompt in developing prudent strategies that enabled it to deal successfully with these conditions and achieve the set profit targets while at the same time continue implementing its strategies related to geographic expansion, building up branch network and enhancing its human and technical capabilities.

'It would not have been possible to realise all of these achievements, were it not for the strong capital resources and long experience of the group and its adherence to the Islamic banking model, which calls on it to work on the development of the land and serve the communities amongst which it operates, while being committed at all times to the highest ethical and professional standards,' he added.

'We will continue to invest our substantial financial resources and expertise in maximising the returns to our shareholders and the investors by implementing short and medium term business strategies based on improving the quality of our products and services, offering more innovative products, expanding the branch network, which exceeded 280 branches in 12 countries,' said president and chief executive Adnan Ahmed Yousif.

'We are optimistic for the future and will effect a cautious expansion policy,' he said. 'Once conditions are conducive we intend to open 59 new branches in Egypt, Algeria, Sudan, Turkey and Pakistan.

'Furthermore, this year we intend to launch Al Baraka Bank Syria with a capital of $100 million.

'We have many other plans and initiatives that we intend to implement this year,' he added.

'These will include launching new innovative products and services in the markets, expanding our market presence into new geographical areas and enhancing the standing of the group in the international markets.-TradeArabia News Service